May 17, 2026 to May 23, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas. Also consider subscribing to our Automotive - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 🗺️ State Government News
• 📚 What We're Reading This Week

Federal Government News

EPA Proposes Extension of Tier 3 Criteria Pollutant Standards for Light- and Medium-Duty Vehicles

The Environmental Protection Agency has issued a proposed rule to delay the introduction of Tier 4 criteria pollutant standards for light-duty and medium-duty vehicles, extending Tier 3 requirements through model years 2027 and 2028. The move responds to reduced battery electric vehicle (BEV) projections following the early termination of federal incentives and policy changes, including the One Big Beautiful Bill Act and the Congressional Review Act resolution impacting California’s Advanced Clean Cars II standards. Manufacturers previously planned compliance with Tier 4 based on higher BEV market share, but BEV adoption is now projected at eight percent for MY 2027 and twelve percent for MY 2028, significantly below earlier estimates. If finalized, the rule would delay stricter NMOG+NOx, PM, CO, and formaldehyde standards, and maintain existing testing protocols for two additional model years. EPA is soliciting public comments, and notes cost savings for manufacturers estimated at $1.77 billion (3% discount rate) across MYs 2027 and 2028.

Sources: www.federalregister.gov

Commerce Department Affirms Preliminary Determination of Circumvention for Chinese Vertical Shaft Engines

The U.S. Department of Commerce has issued an affirmative preliminary determination that imports of vertical shaft engine models 5C65M0 and BC70M0 manufactured by Chongqing Zongshen General Power Machine Co., Ltd. and exported from China circumvent existing antidumping and countervailing duty orders. Entries of these models will be subject to continued suspension of liquidation and cash deposit requirements for AD and CVD rates, effective for products entered after July 11, 2025. Commerce requests comment on the determination and announced suspension instructions for U.S. Customs and Border Protection, with engagement from industry stakeholders encouraged via formal submissions. The International Trade Commission will be notified for consultation as required.

Sources: www.federalregister.gov

IRS Reviews Information Collection Requirements for Clean Vehicle Credits

The Internal Revenue Service published a notice seeking public input on information collection activities pertaining to Clean Vehicle Credits, referencing OMB Control No. 1545-2137. Vehicle manufacturers must certify qualified clean vehicles and submit monthly reports per Revenue Procedure 2022-42, supporting compliance with sections 30D, 45W, and 25E. Statutory changes under the OBBBA terminated clean vehicle credits for vehicles acquired after September 30, 2025, reducing respondent numbers and reporting burden. The estimated annual burden is 1,125 hours for 200 respondents and 1,000 responses. Comments on necessity, accuracy, and burden minimization are requested by July 21, 2026.

Sources: www.federalregister.gov

Commerce Issues Continuation of Antidumping and Countervailing Duty Orders on Non-Oriented Electrical Steel Imports

The Commerce Department announced the continuation of antidumping and countervailing duty orders on non-oriented electrical steel imports from Sweden, Germany, China, Korea, Taiwan, and Japan following determinations that revocation would likely lead to continued dumping, subsidies, and material injury to domestic industry. Orders apply to cold-rolled, flat-rolled alloy steel products meeting specific technical criteria, with exclusions for certain pre-cut and processed parts classified under Chapter 85 of the Harmonized Tariff Schedule. U.S. Customs and Border Protection will continue collection of cash deposits at current rates. The effective date is May 13, 2026, with the next sunset review scheduled within five years.

Sources: www.federalregister.gov

FMCSA Proposes User Fees for State Access to Commercial Driver's License Information System

The Federal Motor Carrier Safety Administration issued a proposed rule to implement user fees for State Driver Licensing Agencies accessing the Commercial Driver's License Information System as authorized by the Strengthening the Commercial Driver’s License Information System Act. The American Association of Motor Vehicle Administrators will collect fees, with an initial charge of $0.33 per Master Pointer Record for six months, then rising to $0.52 per record. Annual CDLIS-related costs are projected at $10.9 million, with $9.6 million to be recovered from States and the remainder from third-party users. FMCSA requests public comments on fee structure and State fiscal impacts.

Sources: www.federalregister.gov

White House Announces Reversal of Biden-Era Refrigerant Rules and Broad Deregulatory Agenda

President Donald J. Trump has reversed Biden-era refrigerant regulations, extending compliance deadlines for hydrofluorocarbon transitions and easing leak repair requirements on large-scale refrigeration systems. The EPA projects the rule changes will save Americans $2.4 billion, protect 350,000 jobs, and lower food prices. Additional measures include resetting fuel economy standards, repealing the Obama-era Endangerment Finding, increasing tariff-rate quotas for lean beef trimmings, and doubling SBA loan limits. These actions are part of a broader deregulatory agenda expected to reduce living costs and provide over $1.2 trillion in savings.

Sources: www.whitehouse.gov

Legislative Updates

Surface Transportation Research and Development Act of 2026

Bill 8748, the Surface Transportation Research and Development Act of 2026, has been ordered to be reported (amended) by voice vote. The bill addresses research and development activities within transportation and public works, advancing to the next legislative stage.

Sources: www.congress.gov

CLEAN Act

Bill 1687, the CLEAN Act, has been placed on the Union Calendar, Calendar No. 571. The bill, originating in the House, falls under the energy policy area and awaits further legislative consideration.

Sources: www.congress.gov

Investing in All of America Act of 2025

Bill 2066, Investing in All of America Act of 2025, has become Public Law No: 119-92. The act covers commerce and recently completed the legislative process, now enacted.

Sources: www.congress.gov

State Government News

Indiana Signs Foreign Land Ownership Ban into Law

Governor Mike Braun signed Senate Enrolled Act 256, banning companies from adversarial nations from owning land in Indiana and requiring registration and disclosure for foreign agents.

Sources: www.indianasenaterepublicans.com

Indiana Enacts Cryptocurrency Kiosk Ban and New Proxy Advisor Transparency Rules

Governor Mike Braun signed HEA 1116, banning cryptocurrency kiosks and enabling enforcement by the Attorney General, and HEA 1273, requiring proxy advisors to disclose financial analysis underlying their recommendations.

Sources: www.indianasenaterepublicans.com

Indiana Simplifies Pension Processes and Property Tax Administration

Governor Mike Braun signed Senate Enrolled Acts 14 and 163, introducing flexibility in state pension benefit selection and extending county circuit breaker tax credits through 2028.

Sources: www.indianasenaterepublicans.com

Ohio Governor Orders Flags Lowered for Memorial Day

Governor Mike DeWine ordered U.S. and Ohio flags to be flown at half-staff on all public buildings and grounds statewide from 12:01 a.m. until noon on May 25, 2026.

Sources: governor.ohio.gov

Indiana Enacts Stricter Foreign Adversary Land Ownership Restrictions

Senate Enrolled Act 256 bans adversarial nations from purchasing land in Indiana, requires registration and disclosure of activities by foreign agents, and blocks state funding for affiliates of foreign terror organizations.

Sources: www.indianasenaterepublicans.com

What We're Reading This Week

• Auto industry braces for motor oil shortage: Industry faces shortages and price increases for motor oil due to supply disruptions.
• Opinion | Germany’s Slow Industrial Suicide: Analysis of regulatory challenges confronting Germany’s automotive sector.
• Global, U.S. EV sales show a tale of two markets: Global EV sales trends differ notably from those seen in the U.S. market.
• Automakers, suppliers seek growth in AI data centers, defense: Automotive manufacturers and suppliers explore opportunities in AI and defense sectors.
• Volvo Cars faces Thai legal threat after fresh EX30 fires: Legal action initiated against Volvo Cars in Thailand following recent vehicle fires.
• With Gas Prices Through the Roof, Will Renting an EV or Hybrid Car Save You Money?: Considerations on cost-saving potential of renting EVs or hybrids amid high gas prices.
• Japanese auto exports to Middle East plunge in April as war disrupts shipping: Conflict-related logistical disruptions cause Japanese auto exports to the Middle East to decline.
• Vietnamese EV maker VinFast's move to shift $7 billion in debt raises 'red flags': VinFast’s $7 billion debt restructuring triggers concern among analysts.
• Automakers achieve supplier relations milestone during bumpy year: Automakers report progress in supplier relations despite challenging market conditions.

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